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August 04, 2015

RBI's Third Bi-Monthly monetary policy review 2015 : Highlights

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In it's Third Bi-Monthly monetary policy review, the Reserve Bank of India (RBI) today kept its interest rates unchanged. Earlier on 2nd June 2015, in it's Second bimonthly monetary policy review, the RBI has lowered its key Repo Rate by 25 basis points to 7.25 percent after lowering it by the same amount in January and March. But this time, the RBI didn't make any changes in Key Rates. The reserve ratio stands at 7.25 percent, the reverse ratio stands at 6.25 percent and cash reserve ratio (CRR) and statutory liquidity ratio (SLR) at 4 percent and 21.5 percent, respectively.

Here are the highlights of RBI's 3rd Monetary Policy review.

  • Policy repo rate under the liquidity adjustment facility (LAF) unchanged at 7.25 per cent
  • Cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time
    liability (NDTL)
  • Continue to provide liquidity under overnight repos at 0.25 per cent of bank-wise NDTL at the LAF repo rate and liquidity under 14-day term repos as well as longer term repos of up to 0.75 per cent of NDTL of the banking system through auctions
  • Continue with daily variable rate repos and reverse repos to smooth liquidity.
  • Economic recovery is still work in progress
  • Hardening of inflation, excluding food and fuel, is most worrisome
  • Retains growth target at 7.6 per cent for 2015-16
  • RBI says banks have passed on an average 0.3% interest rate cut as against its 0.75% rate cut since January
  • Govt’s capital infusion in PSBs to help loan growth and transmission of interest rate cuts as well as ease liquidity

Current RBI Rates (as on 4th August 2015)

S. No
Rates / Reserve Ratios
Bank Rate
8.25 %
2nd June 2015
Repo Rate
7.25 %
2nd June 2015
Reverse Repo Rate
2nd June 2015
Cash Reserve Ratio (CRR)
9th February 2013
Statutory Liquidity Ratio (SLR)
3rd February 2015
Marginal Standing Facility (MSF)
8.25 %
2nd June 2015

Confused about these rates ? You can get detailed explanations of RBI Rates from here

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